On January 10, 2022, Talon Metals Corp., through its U.S. subsidiary Talon Nickel (USA) LLC, entered into an agreement with Tesla Inc. for the supply and purchase of nickel concentrate to be produced from the Tamarack Nickel Project in Aitkin County, Minnesota. The execution of the agreement follows an extensive and detailed due diligence period performed by Tesla and lengthy negotiations between the parties.
Under the terms set out in the agreement, Tesla has committed to purchase 75,000 metric tonnes of nickel in concentrate, from the Tamarack Nickel Project. Tesla also has a preferential right under the agreement to negotiate the purchase of additional nickel concentrate over and above the initial commitment. The purchase price to be paid by Tesla for the nickel in concentrate will be linked to the London Metals Exchange (LME) official cash settlement price for nickel.
Cassels acted for Talon with a deal team that included Chad Accursi and Cathy Mercer (Securities and Mining).